Two lawsuits were filed this week against flash memory player SanDisk Corp. over its proposed purchase of Msystems, according to the company in regulatory filings with the SEC yesterday.

Last month, SanDisk announced plans to acquire Israel-based Msystems in a $1.35 billion deal.

Both suits, Dashiell versus SanDisk and Capovilla versus SanDisk, have been waged in the California Superior Court for Santa Clara County and are class action claims on behalf of shareholders of Msystems. Defendants include SanDisk, Msystems, and several officers and directors of Msystems.

The complaints allege that SanDisk aided and abetted breaches of fiduciary duties by officers and directors of Msystems relating to alleged option backdating and to allegedly furthering their own interests in connection with the proposed merger. The complaints further allege that the terms of the announced merger between the company and Msystems are not fair to Msystems’ shareholders.

By: DocMemory
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